Future of Outsourcing

Outsourcing is here to stay. In a highly competitive business environment, companies need to stick to their core competencies and go for strategic outsourcing to reduce their costs and become more effective in their services to their customers. Outsourcing will be looked at as an essential business skill. A companies' success in managing their outsourcing relationship will determine its business success.

The economic benefits from offshore outsourcing will create more than 337,000 jobs by 2010, according to the study, by Global Insight Inc. ITAA called offshore outsourcing a "net positive for American workers and the U.S. economy."

According to Gartner, Indian-Business Process Outsourcing companies are acquiring companies in the U.S. and other locations with several objectives. These include access to a new market beyond just a toe-hold, with ready resources, clients and revenues, access to a new set of skills or domain and process expertise in the target market, access to a new technology or intellectual property and also greater credibility with target clients, by having a strong local presence beyond just a sales office. This growing trend further highlights the transformation of offshore outsourcing to global sourcing.